2016/12/28News

The Classic Rock Awards - Creating a Brighter Future (Further Details)

KLab Inc.(TSE Prime Market: 3656)

KLab Entertainment Inc., PCM
December 28, 2016

Foreword

KLab Entertainment and Parallel Contemporary Music, two of the three partners of the Classic Rock Awards 2016, would like to offer the following additional information in regards to the joint press release announced by the partners on November 20.

With PCM acting as facilitator of communications among the partners, we worked together confirming the facts in preparation of this release. However, before it could be completed, we heard reports that TeamRock, one of the partners, had entered into administration. Upon hearing this, the two partners looked into the situation and found that it was true.

Taking this unfortunate fact into consideration, we realize that it is no longer a possibility to release another joint press release from all three partners. As a result, the following information has been released by KLab Entertainment and PCM. We would like to take this opportunity to state publicly that our prayers and deepest sympathies are with every staff member of TeamRock, and we wish nothing but a brighter future for them all.

 

The partners of the Classic Rock Awards would like to take this opportunity to thank everyone who attended the Classic Rock Awards 2016 + Live Performance held on November 11, 2016.

On November 14, both KLab Entertainment and TeamRock issued separate statements addressing the fact that there was not a performance by Jimmy Page at this year’s event.

After these statements were released, it quickly became clear to the partners of the Classic Rock Awards that a significant misunderstanding had occurred between them. In light of this, both KLab Entertainment and TeamRock retracted their statements. Both companies refrained from addressing the reasons why they retracted their statements at the time. However, after having confirmed the facts surrounding the issues at hand, the partners now wish to declare the following.

1. TeamRock’s statement contained statements that were significantly contrary to the facts.
2. KLab Entertainment’s statement contained inappropriate wording that gave an incorrect impression of the situation.

In response to the outpouring of support we have received from the concert-goers, artists, and affiliates of this year’s event, we feel that we should clarify the facts surrounding the situation at hand, as well as share the background as to how we arrived at this conclusion by releasing the relevant information via this press release.

First and foremost, before delving into the background contained in this report, the partners would once again like to take this opportunity to offer their deepest apologies to rock fans everywhere for allowing this situation to happen that has resulted in so many disappointed concert-goers, as well as to the participating artists and affiliates, who without which this year’s event would not have been possible.

Premises

1. The Meaning of Classic Rock Awards 2016
In the past, TeamRock has hosted the Classic Rock Awards in the United Kingdom as an event focused solely on an awards ceremony without performances from the artists. However, when the decision was made to take the event to Tokyo this year, it was decided that a live performance element should be included in addition to the awards ceremony. This made this year’s event significantly different from past Classic Rock Awards. The event’s name was changed to the Classic Rock Awards 2016 + Live Performance to reflect this change.

2. Role of Each Partner
This Classic Rock Awards 2016 was held via the partnership of TeamRock, Parallel Contemporary Music, and KLab Entertainment. Each of the partners were responsible for different facets of this year’s event.

The roles are as follows:

TeamRock: Artist Contracting and Negotiations
Parallel Contemporary Music: Broadcast Producer, Distributer and Commercial Rights Holder
KLab Entertainment: Production, Ticket Sales, Marketing and Promotions

Background of the Situation

1. How Jimmy Page’s Appearance was Booked and the Production of Promotional Materials
On September 16, 2016, TeamRock contacted KLab Entertainment to let them know that Jimmy Page had confirmed he would be participating in this year’s event. For TeamRock, the Classic Rock Awards were first and foremost an awards ceremony, as it had been in years past. On the other hand, for KLab Entertainment (as stated in Premise 1 above, “+ Live Performance” was added to the name of this year’s event), the event was a live performance. When KLab Entertainment received this information, they took it to mean that Jimmy Page would be performing at the event. At this point in time, KLab Entertainment had not yet received a copy of the contract between Jimmy Page and TeamRock.

After TeamRock contacted KLab Entertainment, KLab Entertainment set to work creating a press release and poster. An English version of these promotional materials was sent to TeamRock for approval, as they were the only ones at this time who knew the contents of the artist contracts as well as the current status of the artist negotiations.

During the review process of this press release (released on September 23), TeamRock told KLab Entertainment to change the word “perform” to “appear” and requested other similar changes as a performance had not yet been guaranteed, and they were still continuing artist negotiations in order to ensure a performance. However, this communication was conducted entirely in English, and KLab Entertainment was unable to accurately grasp the meaning of what TeamRock was saying.

As for the review process of the poster, as mentioned above, due to a fundamental difference in understanding as to the heart of this event as a whole that existed between the two companies, TeamRock had no problem approving the poster with Jimmy Page’s name listed as headliner of the event. However, KLab Entertainment took TeamRock’s approval of this poster as further evidence that a performance by Mr. Page would occur at the event, and were more convinced than ever that he would perform.

2. Events Leading up to the Day Before the Classic Rock Awards
TeamRock and KLab Entertainment held a meeting on October 13, 2016. TeamRock explained to KLab Entertainment that Jimmy Page was not contractually obligated to perform, but instead, the decision whether or not to perform was left completely up to him.

When KLab Entertainment heard this, they strongly protested, stating that they would not accept any chance of not having a performance. KLab Entertainment ended the meeting by stating that if Jimmy Page did not perform, then they would be forced to cancel the event and refund all of the tickets purchased. They also requested that TeamRock disclose to them the details of their contract with Jimmy Page, and ensure a guaranteed performance at the event.

The next day, at TeamRock’s request, another meeting was held with KLab Entertainment. TeamRock asked KLab Entertainment to reconsider cancelling the event. KLab Entertainment insisted on an agreement for a performance in writing.

TeamRock responded to KLab Entertainment’s requests with the following:

1. TeamRock explained it was not a wise decision to request a written guarantee from Jimmy Page for a performance, as the most realistic and most often-used method of negotiation was to get the artist to agree to a performance by first creating an environment in which the artist would want to negotiate and then choose to perform. For example, they recommended that Jeff Beck ask Jimmy Page to hold a session together.
2. TeamRock told KLab Entertainment that TeamRock was sure he (Jimmy Page) would play.*
3. TeamRock agreed to send a copy of the contract to KLab Entertainment at a later date.

These three answers led KLab Entertainment to believe that a performance by Mr. Page would indeed occur.

*In regards to point 2, both TeamRock and KLab Entertainment hold differing views on what was promised about a performance by Jimmy Page. KLab Entertainment believed based on the detailed explanation that they received from TeamRock on exactly how they were to convince Jimmy Page to perform at the event that TeamRock had guaranteed a performance. TeamRock believes that while they promised to use every means possible to make a performance occur, they did not guarantee a performance by Jimmy Page.

After this meeting, a copy of TeamRock’s contract with Jimmy Page was sent to KLab Entertainment via email on October 25, 2016. (The contract was signed by Jimmy Page on October 14, and by TeamRock on October 24.)

When KLab Entertainment confirmed the contents of this contract, they saw that it contained the details that TeamRock had relayed on October 13. While it did not require a performance, the contract was structured with a performance in mind, as it contained the details for an additional bonus that would be paid if a performance occurred.

3. Statements Released by KLab Entertainment and TeamRock on November 14
KLab Entertainment carried out event preparations, production, and the event itself believing without question that a performance by Jimmy Page would occur. However, while Mr. Page did appear on stage at the event, he did not perform.

KLab Entertainment believed that TeamRock had guaranteed a performance. As a result, KLab Entertainment thought that Mr. Page had at first wished to perform, then changed his mind at the last minute. Furthermore, as the only partner of the Classic Rock Awards based in Japan, KLab Entertainment believed they had a responsibility to explain the situation to the concert attendees. They felt they should confirm the cause of the issue at hand with Mr. Page himself, but at the same time they were not in a position where they could speak directly with him. As a result, they were left completely in the dark as to why he did not perform.

In light of the above information, the statement released by KLab Entertainment on November 14 stated that Jimmy Page did not perform of his own volition, and that they were currently confirming with Mr. Page as to the reason why. At the same time, this statement was worded in a way that gave the incorrect impression that Mr. Page had a responsibility to perform at the event.

However, in regards to the question as to the chances of a performance by Jimmy Page, it is clear from the information above that this was a problem that existed solely between KLab Entertainment and TeamRock. Despite the fact that Jimmy Page was never in any way responsible for the situation at hand, the wording used in this release was inappropriate and made it seem like he was.

Accordingly, in addition to retracting their statement, KLab Entertainment would also like to issue an apology to Jimmy Page, to all of his fans, and to rock fans everywhere for any trouble they may have caused.

TeamRock also issued a statement on November 14. This statement contained three points which were significantly different from the facts of the situation at hand. These points are as follows.

1. The wording used claimed that there was absolutely no chance of a performance, despite the fact that even in the contract itself, a performance by Jimmy Page was clearly planned.
2. The statement claimed that TeamRock had asked Jimmy Page to play but he had declined, despite the fact that they had guaranteed to KLab Entertainment that they would ensure a performance by Mr. Page.
3. The statement claimed that KLab Entertainment had reviewed in advance and signed the contract, despite the fact that Jimmy Page’s contract was sent to KLab Entertainment after it had already been signed.

Cause of the Problem and Future Preventative Measures

We believe that the core reason why the partners were unable to prevent this unfortunate situation was that KLab Entertainment and TeamRock were unable to construct a system that allowed them to confirm the exact possibilities of performances in a totally objective and accurate manner, as should be required of all information presented to potential concert-goers about performers.

As a result, in order to keep a situation like this from ever happening again, we will create a system that allows us to check and confirm all promotional materials and information relayed to customers in a fully objective and thoroughly exact manner.

We have taken this situation very seriously—from the misunderstanding confirmed by the partners to the disappointment created for so many rock fans as a result. In response to the confusion caused by this unfortunate misunderstanding, we announced last month that we would offer everyone who attended this year’s event exclusive priority access and a discount on the ticket price for next year’s event, as well as a refund for tickets for anyone who was in any way disappointed by the fact that a performance by Mr. Page did not occur.

Regardless of the details of the situation, we offered a refund to all of the disappointed concert-goers before we finished confirming the facts because it was very clear that we were unable to meet the expectations of those who attended this year’s event due to the fault of the partners. We would like to once again offer our sincerest apologies for the time it took to confirm the details of this situation, as well as our inability to offer a full report in a more timely manner.

Both KLab Entertainment and PCM are saddened to hear the news of TeamRock's entry into administration. KLab Entertainment and PCM will continue to work with the administrators to create a brighter future for the Classic Rock Awards.

* This news topic was originally posted on the KLab Entertainment official site and moved to this page on March 1, 2018 at 4:31pm (UTC+9).

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